Inspired by the Prime Minister’s vision of AtmaNirbhar Bharat, the Government adopted structured and targeted policy initiatives for the development of electronics manufacturing across the entire value chain including semiconductors.
India’s success in electronics manufacturing:
Since 2014, the Government of India has undertaken a series of initiatives to promote electronics manufacturing in the country. These include FDI reforms, tax reforms, labour reforms, Production Linked Incentive schemes, etc.
India now manufactures around 99.2% of the total mobile phones sold in the country. Mobile phones have emerged as the single largest exported item. Industry estimates that electronics manufacturing now provides employment to nearly 25 Lakh people.
Electronics Manufacturing:
Prime Minister Shri Narendra Modiji’s vision has benefitted Tamil Nadu. Government of India has supported the setting up of many electronics manufacturing plants in Tamil Nadu as detailed below:
Electronics Manufacturing Clusters (EMC):
Prime Minister Shri Narendra Modi ji has encouraged setting up manufacturing clusters in various sectors like electronics, textiles, defence, chemicals, etc. His vision was translated through the Electronics Manufacturing Cluster (EMC) scheme in the electronics sector.
Government has supported the following EMCs in the state of Tamil Nadu:
EMC at Manallur – Spread over an area of 474.3 acres, with a project cost of ₹587.47 crore.
EMC at Pillapaikkam – Spread over an area of 379.3 acres, with a project cost of ₹424.55 crore.
Semicon India Programme:
The semiconductor industry is a foundational industry. All sectors of the economy such as industrial, consumer, defence, telecommunication and automotive etc depend on semiconductors. This sector offers transformative capabilities by driving technological innovation, economic growth, and strategic self-reliance.
Recognising the importance of Semiconductors, the Government launched Semicon India Programme in January 2022 for setting up of semiconductor fabs, display fabs semiconductor packaging and also for promotion of Indian designed chips.
Under the Semicon India Programme, the Government has approved 12 manufacturing projects spanning across 6 states namely Andhra Pradesh, Assam, Gujarat, Punjab, Odisha and Uttar Pradesh with total investment commitments of about ₹1.64 lakh crore. Out of these 12 projects, commercial production has already commenced from three plants.
Semicon India programme is designed to leave the choice of location with the investors. Investors evaluate the location based on various factors. The government encourages distributed manufacturing. Because of this approach, semiconductor plants are today located in six states across the country.
Semiconductor design:
Semiconductor design plays a prominent role in defining the “architecture” of a chip to achieve a specific function or application. Since chip design is an extremely R&D, engineering, and IP intensive process, the Government is providing financial as well as infrastructure support (including free access to Design tools) to Startups and MSMEs through Design Linked Incentive (DLI) Scheme within the Semicon India Programme.
Further, Twenty-four (24) semiconductor design projects have also been approved for financial support and 105 startups/MSMEs for Electronic Design Automation (EDA) tool support under DLI Scheme
The Government of India has encouraged Semiconductor design projects in Tamil Nadu. The following companies are being supported by Government of India, as mentioned below:
Semiconductor talent development:
Realising the nature of this deep tech industry, the Government of India is supporting the design talent development in 315 institutes across the country.
Government of India has supported talent development in following universities in Tamil Nadu:
Therefore, it is clearly evident that the Government of India has strongly supported the development of electronics manufacturing and design ecosystem in Tamil Nadu.
Semicon 2.0, approved by Cabinet on 15.07.2026, does not exclude any segment which was earlier covered under the Semicon India Programme. As various projects approved under the Semicon India Programme have generated demand for the upstream supply chain, therefore, Semicon 2.0 is designed to cover a complete ecosystem of semiconductors. This would offer more opportunities to all the states, including Tamilnadu, for attractive investments under Semicon 2.0.
IndiaAI Mission:
India’s AI policy is based on Prime Minister Narendra Modi’s vision of democratizing technology. It is aimed at creating economic opportunities and employment for youth, while addressing risks associated with it.
India’s AI strategy builds on India’s vibrant IT sector with annual revenue of 300 billion dollars and 60 Lakh strong workforce. India AI Mission supports India’s AI ambitions under seven pillars including development of AI models, applications, datasets, talent development and affordable compute.
AI models:
The Government of India is supporting Indian startups and institutions to develop large language models (LLMs) and Small Language Models (SLMs). 20 indigenous sovereign model proposals have been identified for support, comprising 12 LLMs and 8 SLMs.
Notable successes so far include:
Sarvam AI’s Sarvam 30 billion parameter and 105 billion parameter models
Gnani.AI’s speech-to-speech model
BharatGen’s multilingual foundation models
Avataar AI’s video generation model
In addition, domain-specific SLMs, including specialized models and AI frameworks addressing healthcare, language technologies and agentic AI systems are at various stages of development and deployment.
AI Centres of Excellence:
Government has also approved a scheme for the establishment of 58 Artificial Intelligence Centres of Excellence (AI-CoEs) across States and Union Territories, in collaboration with the respective State/UT Governments and industry partners.
Government of India has approved Two (2) Artificial Intelligence Centres of Excellence (AI-CoEs) in Tamil Nadu.
India US cooperation on AI:
AI is an important component of India-US co-operation. Under the Pax Sillica initiative, India and the US intend to work together to enable access to compute and processors for AI and accelerating research and development.
Common Services Centres (CSCs) have been set up under an initiative of the Ministry of Electronics and Information Technology on an entrepreneurship and self-sustainable model. CSC e-Governance Services India Limited (CSC SPV) is the implementing agency for the project. The Project CSC aims to deliver e-services to rural citizens through CSCs in an assisted mode and to expand the CSC network till the Gram Panchayat level. It is a PAN India project. More than 800 citizen centric services are being delivered through these CSC across the country. As on 31.05.2026, the spread of CSCs at National and in the State of Tamil Nadu is as follows:
District wise list of CSCs and list of services are available at www.csc.gov.in.
This information was submitted by Union Minister for Electronics and Information Technology Shri Ashwini Vaishnaw in Lok Sabha on 22.07.2026.
